Discussion Document National Anti-Corruption Strategy
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National Anti-Corruption Strategy Discussion Document
DISCUSSION DOCUMENT
Towards a National Anti-Corruption Strategy
for South Africa
This document reflects the inclusion of some of the comments and
recommendations made during the initial consultations in
September and October 2016
December 2016Published in the Republic of South Africa, 2016
This discussion document was commissioned by the Steering Committee responsible for the development of
a National Anti-Corruption Strategy (NACS), as part of the South African Government’s anti-corruption
programmes. The work towards the development of a resilient anti-corruption system, as envisioned by the
National Development Plan, was done under the guidance of the Anti-Corruption Inter-Ministerial
Committee (ACIMC).
NACS Steering Committee members : Department of Cooperative Governance (DCoG)
Department of Public Service and Administration (DPSA)
Department of Planning, Monitoring and Evaluation (DPME)
Government Communication and Information System (GCIS)
Office of the Public Service Commission (PSC)
National Intelligence Coordinating Committee (NICOC)
South African Local Government Association (SALGA)
State Security Agency (SSA)
Technical assistance : Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ1)
Researched and compiled by : Public Affairs Research Institute
Distributed by : Government Communications (GCIS)
Private Bag X745, Pretoria, 0001
Street address: Tshedimosetso House
1035 cnr Frances Baard and Festival streets
Hatfield
PRETORIA
Tel: (012) 473 0000
Fax: (012) 325 2030
E-mail: marketing@gcis.gov.za
Design & layout : SSA Reprographic Unit
1 The GIZ is a federal enterprise specialising in the field of international cooperation for sustainable development, with the German Federal Ministry for Economic Cooperation
and Development (BMZ) as its main commissioning party. The GIZ has provided ongoing support to the South African government through bilateral cooperation since 1993.
The Governance Support Programme (GSP) was established through a bilateral agreement between South Africa and Germany. The GSP aims, among other things, to
strengthen the capacity of state institutions and their cooperation with the private sector and civil society.
National Anti-Corruption Strategy
Discussion DocumentContents
Glossary of key terms used in the document
List of abbreviations and acronyms
Introduction 1
PART A : Background 2
1. Process for developing proposals for the strategy 2
2. Next steps: roadmap for developing a final strategy 2
3. Policy context 2
4. Role players and stakeholders 5
5. Challenge 8
PART B : Proposals for a national anti-corruption strategy 17
1. Rationale for a national anti-corruption strategy 17
2. Vision 17
3. Objectives 18
4. Conceptual framework 18
5. Strategic pillars and programmes 19
Pillar 1 : Support citizen empowerment in the fight against corruption 21
Pillar 2 : Develop sustainable partnerships with stakeholders 22
Pillar 3 : Improve transparency 23
Pillar 4 : Improve the integrity of the public procurement system 24
Pillar 5 : Professionalisation 25
Pillar 6 : Improve adherence to integrity management and
anti-corruption mechanisms and improved consequence
management for non-compliance 26
Pillar 7 : Strengthen oversight mechanisms 27
Pillar 8 : Strengthen the resourcing, cooperation and independence
of dedicated anti-corruption agencies 28
Pillar 9 : Vulnerable sector management 29
6. Institutional mechanisms to implement the strategy 30
Appendices 31
Appendix A : Roadmap for developing a final national anti-corruption strategy 31
Purpose 31
Proposed Process 31
Phase 1 : Research, Initial Consultation And Drafting 32
Phase 2 : Public Consultations 33
Phase 3 : Finalisation of the NACS 35
Appendix B : Summary of Programme Elements under each Strategic Pillar 36
Appendix C : United Nations Guidelines On Developing National
Anti-Corruption Strategies 37
National Anti-Corruption Strategy
Discussion DocumentGLOSSARY OF KEY TERMS USED IN THE DOCUMENT Accountability: is understood as the acknowledgment and assumption of responsibility for actions and decisions, and being answerable to a person or group of people (such as Government being answerable to citizens, a firm being answerable to a regulator, a non-governmental organisation being answerable to donors). Business sector: refers to private sector firms in the formal and informal sector, as well as organised business, including their employees and members of the Board. Civil society sector: refers to non-governmental organisations outside the business sector, inclusive of organised labour, community-based organisations, religious bodies, social movements, the media, academia, professional bodies and non-profit organisations (NPOs). Corruption: According to South Africa’s Prevention and Combating of Corrupt Activities Act (PRECCA), Act 12 of 2004 corruption occurs when any person directly or indirectly accepts or offers (or agrees to offer or accept) any form of gratification (i.e. not necessarily monetary) that will either benefit themselves or another person. In terms of this legislation, corruption is defined as acts that involve an improper/corrupt exchange between two or more parties. In South Africa, as in many other countries, there is some debate about the definition of corruption. For the purposes of this document, the definition of corruption includes the acts defined as corrupt under the PRECCA, and is broadened slightly to include the concept of “abuse of entrusted power or authority for private gain” that does not have to involve more than one party (for example, theft of public monies where there is only one witting party to this theft). Government or public sector: includes employees and elected and nominated officials in all three spheres of government (including those of state-owned and state-controlled entities). Local government: includes employees of local municipalities, local government agencies and councillors. Professionalise: refers to the orientation and skills set of employees. A professionalised sector is one in which its employees see their commitment first and foremost to the citizens of the country, according to the values and requirements of the Constitution of the Republic of South Africa and to implementing policies/services/products in the interest of social and economic transformation, National Anti-Corruption Strategy Discussion Document
and not to private or party interests where these deviate from formal policy. Further, it
incorporates a vision in which employees have the necessary skills and experience to
undertake their work.
Provincial and national government: covers employees and executive authorities of national and
provincial departments and entities.
Public service: refers to employees of national and provincial departments and entities as defined
in the Public Service Act.
Transparency: refers to an organisation or individual operating and providing information in such
a way that it is easy for others to see what actions are performed and to enable relevant groups of
people to hold the organisation/sector/leader accountable for their actions, including whether
due process has been followed.
Vulnerable sector or high-risk sector: refers to an area, sector and/or institution with a high risk
or specific vulnerability to the manifestation of corrupt practices or activities. This extends to
business/private industries or sectors (e.g. mining or construction), or institutions inclusive of
organs of state (e.g. departments, institutions, state-owned entities or municipalities) or
large-scale projects (e.g. infrastructure development) at risk of being targeted by actors or
facilitators (both domestic or foreign) of corrupt practices, or that could be at risk due to their
position or involvement in procurement or decision-making processes (e.g. regulatory or
compliance monitoring functions, procurement, investigative, judicial) and/or that could place
the development of the country or functioning of government systems at risk or make it
vulnerable to exploitation.
National Anti-Corruption Strategy
Discussion DocumentLIST OF ABBREVIATIONS AND ACRONYMS ACIMC Anti-Corruption Inter-Ministerial Committee ACTT Anti-Corruption Task Team AEPF Anti-Intimidation and Ethical Practices Forum AFU Asset Forfeiture Unit AGSA Auditor-General of South Africa ANC African National Congress AU African Union BAC Business against Crime B-BBEE Broad-Based Black Economic Empowerment BEE Black Economic Empowerment BUSA Business Unity South Africa CEO Chief Executive Officer CPI Corruption Perceptions Index DBE Department of Basic Education DCoG Department of Cooperative Governance DPCI Directorate of Priority Crime Investigation DPLG Department of Provincial and Local Government DPME Department of Planning, Monitoring and Evaluation DPSA Department of Public Service and Administration DTI Department of Trade and Industry EA Executive Authority EthicsSA Ethics Institute of South Africa FATF Financial Action Task Force FIC Financial Intelligence Centre GCIS Government Communication and Information System GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit HR Human Resource Management HSRC Human Sciences Research Council IGI Inspector-General of Intelligence IPID Independent Police Investigative Directorate JCPS Justice Crime Prevention and Security Cluster MEC Member of the Executive Committee MFMA Municipal Finance Management Act MPAT Management Performance Assessment Tool MPS Municipal Police Services MTSF Medium Term Strategic Framework National Anti-Corruption Strategy Discussion Document
NACF National Anti-Corruption Forum
NACS National Anti-Corruption Strategy
NDP National Development Plan
NEOF National Ethics Officers Forum
NICOC National Intelligence Coordinating Committee
NPA National Prosecuting Authority
NPC National Planning Commission
NGO Non-governmental organisation
OCPO Office of the Chief Procurement Officer
OECD Organisation for Economic Cooperation and Development
PAIA Promotion of Access to Information Act
PAJA Promotion of Administrative Justice Act
PARI Public Affairs Research Institute
PFMA Public Finance Management Act
PRECCA Prevention and Combating of Corrupt Activities Act
PSC Public Service Commission
RSA Republic of South Africa
SADC Southern African Development Community
SALGA South African Local Government Association
SANDF South African National Defence Force
SAPS South African Police Service
SARS South African Revenue Service
SCM Supply chain management
SCOPA Parliament’s Standing Committee on Public Accounts
SIU Special Investigating Unit
SMS Senior Management Service
SOE State-owned enterprise / state-owned entity
SSA State Security Agency
TAU Technical Assistance Unit (of the National Treasury)
UNCAC United Nations Convention against Corruption
TAU Technical Assistance Unit (of the National Treasury)
UNCAC United Nations Convention against Corruption
National Anti-Corruption Strategy
Discussion DocumentINTRODUCTION
The Government’s commitment to reduce corruption in South Africa is articulated in the Medium
Term Strategic Framework (MTSF) 2014–2019, the National Development Plan (NDP), and the
National Security Strategy (NSS). The MTSF 2014-2019 requires the development of a National
Anti-Corruption Strategy (NACS) and a supporting implementation plan.
This document outlines proposals for a National Anti-Corruption Strategy. As noted in the
National Development Plan, tackling corruption involves commitments from all members and
sectors of society. A national strategy should serve as a guide for developing a set of shared
commitments across sectors, to support collaboration within and between sectors, and to direct
renewed energy towards the goal of reducing corruption and building an ethical society.
The document is divided into two parts:
• Part A provides background to the development of the strategy: it outlines the process
followed up until now to develop proposals for a national strategy. It details a roadmap
that will ensure that the process for developing the final strategy is inclusive and
transparent, and developed with substantial contributions of leaders from government,
business and civil society. Part A concludes with a summary of the challenges facing the
country: the current manifestations of corruption in South Africa; the foundations on
which further anti-corruption efforts can be built; and the issues the strategy should aim
to tackle.
• Part B outlines proposals for inclusion in a strategy: outlining a vision, objectives,
strategic pillars and programmes for the strategy.
1 National Anti-Corruption Strategy
Discussion DocumentPART A: Background
1. Process for developing proposals for the strategy
The proposals for a National Anti-Corruption Strategy contained in this document are based on:
• A thorough situational review of corruption and anti-corruption initiatives to date2.
• Consultations undertaken with stakeholders in government, business, civil society and
academia.
• The scrutiny of relevant national policy that articulates government commitments and plans
for reducing corruption, such as the National Development Plan; the Medium Term Strategic
Framework (2014-2019); and documents outlining the programmes of the Anti-Corruption
Task Team (ACTT) and the National Anti-Corruption Forum (NACF).
• Readings of international guides for developing anticorruption strategies, including the
United Nations document, ‘National Anti-Corruption Strategies: A Practical Guide for
Development and Implementation’ (2014).
• Academic literature in the area of institutional change, corruption and related fields.
2. Next steps: Roadmap for developing a final strategy
A roadmap outlining the process for developing a final National Anti-Corruption Strategy is
proposed. Appendix A of this document contains more details in this regard.
The roadmap was developed to meet the following goals:
• Achieve a “whole of government and society” approach in the fight against corruption.
• Be open, transparent and inclusive of all sectors of South African society.
• Arrive at a robust National Anti-Corruption Strategy that has buy-in from Government,
business and civil society.
• Foster ownership of the process and the resulting National Anti-Corruption Strategy by all
sectors.
3. Policy context
The Constitution of the Republic of South Africa, Act 108 of 1996 (the Constitution) and a range of
statutory provisions and specific legislation provide the broad framework and founding principles
for anti-corruption work in South Africa.
2 A summary of the review is contained in this document. The full review is covered in the document, ‘Diagnostic Review and Situational Analysis: Corruption and
Anti-Corruption Initiatives in South Africa’, May 2016.
National Anti-Corruption Strategy
Discussion Document 2Recognition of the rule of law, and the accountability and transparency of Government, are
founding principles of the Constitution, which also provides for the establishment of oversight
bodies that play a role in supporting accountability and transparency of the public and private
sectors. Various pieces of legislation have been developed to give greater legal effect to the
principles of accountability and transparency contained in the Constitution.
The King Code3 of Governance Principles in South Africa has relevance for reducing corrupt
practices by members of the private sector and state-owned as well as state-controlled entities, as
does Business Unity South Africa’s Code of Good Corporate Citizenship.
Recommendations for reducing corruption in the private sector, as provided by the Organisation
for Economic Cooperation and Development, have been incorporated into Regulation 43 of the
South African Companies Act, Act 71 of 2008.
South Africa is a signatory to various international conventions and treaties that commit the
country to implementing a range of interventions aimed at reducing corruption. These
conventions include the United National Convention Against Corruption (2003), the Organisation
for Economic Cooperation and Development Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions (1997), the African Union Convention on
Preventing and Combating Corruption (2003), the Southern African Development Community
Protocol against Corruption (2001), and the United Nations Convention against Transnational
Organised Crime (2000) and its associated Protocols. Further, South Africa is an active participant
in relevant intergovernmental bodies and forums, such as the Group of 20’s (G20’s) Anti-
Corruption Working Group and the Financial Action Task Force (FATF), and is implementing
various FATF recommendations.
Policy proposals for reducing corruption and improving accountability and transparency of the
public and private sectors are articulated in the National Development Plan. The National
Development Plan contains proposals for building a resilient anti-corruption system through
strengthening the protection of whistle-blowers; developing greater central oversight over the
awarding of large tenders or tenders with long duration; and empowering the tender compliance
monitoring office (now the Chief Procurement Officer) to investigate corruption and the
monetary value of tenders. It also outlines proposals for strengthening the accountability and
responsibility of public servants as well as judicial governance and the rule of law.
3 The King Committee on Corporate Governance has already issued four King Reports that provide guidelines for the governance structures and operation of companies in South
Africa, setting out what ethical and effective leadership entails. The reports are referred to as: King I (issued in 1994), King II (issued in 2002), King III (issued in 2009) and the
most recent revision King IV (issued in 2016).
3 National Anti-Corruption Strategy
Discussion DocumentImproved resources for a revitalised National Anti-Corruption Forum are also recommended, as
well as calls for commitments by the various sectors to ensure that the Forum is effective. Several
National Development Plan recommendations on building the capacity of the State are also
relevant for anti-corruption initiatives, including proposals regarding the professionalisation of
the public service; strengthening delegation, accountability and oversight in the public sector;
and improving governance of state-owned and state-controlled entities.
Government outlined several goals and indicators with relevance to reducing corruption in the
latest Medium Term Strategic Framework (2014-2019). A number of these priorities are drawn
directly from the National Development Plan:
• Under the outcome, “All South Africans are, and feel, safe” the strategy targets “an
improvement in South Africa’s ranking on the Transparency International Corruption
Perception Index”; and notes that Government will prioritise “coordinated initiatives to make
the criminal justice system more efficient and effective”. Government further commits to
improving conviction rates for serious corruption cases. The strategy also noted that revisions
are needed for legislation “to provide for more stringent penalties [for corruption-related
crimes], to protect whistle-blowers including those in the private sector, and to strengthen the
independence of anti-corruption agencies to insulate them from political pressure”.
• Under the outcome, “Responsive, accountable, effective and efficient local government”, the
strategy notes a decline in public trust in municipalities owing to “weak leadership or political
interference in operations, vacancies in critical posts, poor financial management, lack of
transparency and accountability, and weak and ineffective platforms for public participation
and communication with communities”. It aims to promote citizen participation in local
government processes and to improve skills development and capacity building, focusing on
improving “the quality of municipal administrative and management practices including
human resources and recruitment practices, supply chain and financial management, and
anti-corruption initiatives”.
• Under the outcome, “An efficient, effective and development-oriented public service”, the
strategy sets goals for “institutionalising long-term planning, forging a disciplined,
people-centred and professional public service, [and] empowering citizens to play a greater
role in development and building an ethical public service”. The document outlines a central
role for the Chief Procurement Officer in strengthening oversight of procurement processes
and pricing to ensure “cost-effectiveness and transparency, better value for money, and
adherence to procedures and fairness”. It also notes that, “as part of steps to promote an
National Anti-Corruption Strategy
Discussion Document 4ethical public service, measures will be introduced to prevent public servants from doing
business with the state, as set out in the election manifesto. These will be supported by
improved implementation of the Financial Disclosure Framework, strengthened protection of
whistle-blowers, and the provision of technical assistance to departments for the effective
management of discipline.”
4. Role players and stakeholders
Politicians are elected representatives to champion the interests of the public. They are obliged to
uphold the Constitution, especially the principles of transparency and accountability. Their
contribution towards the development of a National Anti-Corruption Strategy is therefore both
necessary and critical.
The Anti-Corruption Inter-Ministerial Committee (ACIMC) was established in June 2014 and is
mandated to coordinate and oversee the work of state organs aimed at combating corruption in
the public and private sectors. The Committee is convened and chaired by the Minister for
Planning, Monitoring and Evaluation in the Presidency, and comprises the Ministers of Justice and
Correctional Services, State Security, Police, Cooperative Governance and Traditional Affairs,
Public Service and Administration, Finance, Home Affairs and Social Development. The
Committee also provides strategic direction for the operational activities of the multi-agency
Anti-Corruption Task Team.4
In 2014 the Anti-Corruption Inter-Ministerial Committee expanded the role of the Anti-Corruption
Task Team, which is the central body mandated to give effect to Government’s anti-corruption
agenda. Guided by the Anti-Corruption Inter-Ministerial Committee and Anti-Corruption Task
Team Executive Committee, this collective of government stakeholders is mandated to implement
Government’s anti-corruption agenda and programmes. The task team currently consists of
representatives from the National Prosecuting Authority, the Asset Forfeiture Unit, the Directorate
for Priority Crime Investigation (“Hawks”) in the South African Police Service, the Special
Investigating Unit, the South African Revenue Service, the Office of the Accountant-General and
the Chief Procurement Officer in the National Treasury, the Financial Intelligence Centre, the
National Intelligence Coordinating Committee, the State Security Agency, the Presidency, the
Department of Justice and Constitutional Development, the Department of Public Service and
Administration, and the Government Communication and Information System.
4 In July 2010 the Justice, Crime Prevention and Security Cluster was tasked with the establishment of a task team to fast-track investigations and prosecution. The Anti-
Corruption Task Team was formed in October 2010 to give effect to this, aimed at a multi-disciplinary and integrated operational approach based on the mandate of the South
African Police Service Directorate for Priority Crime Investigation.
5
National Anti-Corruption Strategy
Discussion DocumentOther government organisations playing a role in the anti-corruption landscape include the
Auditor-General of South Africa (Auditor-General) and the Department of Cooperative
Governance, in the case of local government. These departments work with the Anti-Corruption
Task Team on specific programmes.
Important oversight bodies include the Public Service Commission (mandated to provide
oversight of the public service); the Public Protector (investigating and redressing
maladministration and abuse of power in state affairs); the Independent Police Investigative
Directorate (mandated to provide oversight of policing); the Inspector-General of Intelligence
(oversight of intelligence services); and committees tasked with executive and government
oversight in Parliament, the provincial legislatures and local government councils.
The Competition Commission plays a role in combating corruption through its work in
investigating and regulating against private sector collusion: certain collusive practices are
defined as corrupt in terms of the Prevention and Combating of Corrupt Activities Act.
The National Anti-Corruption Forum, a coalition formed by the public, business and civil society
sectors, was established in 2001 with the aim of driving the national anti-corruption campaign. Its
mandate is to contribute towards the establishment of a national consensus through the
coordination of sectoral strategies against corruption, to advise Government on the
implementation of strategies to combat corruption, to share information and good practice on
sectoral anti-corruption work and to advise sectors on the improvement of sectoral
anti-corruption strategies. It comprises various representatives of Government, the civil society
sector, including trade unions, and the business sector.
Several bodies in the business sector have been active in anti-corruption work. These include
those representing organised business, professional associations, and networks and forums set up
to undertake anti-corruption work in the sector, or in partnership with Government to address
corruption as it manifests more broadly in society.
A number of other civil society organisations play a role in monitoring the use or abuse of state
resources, transparency and access to information, governance of organisations and instances of
possible illegal activity. Some of these organisations also run campaigns to raise awareness of the
damaging effects of engaging in corrupt activity. Corruption Watch was established in 2012 with
the sole purpose of fighting corruption and is the accredited chapter of Transparency Internation
National Anti-Corruption Strategy
Discussion Document 6al in South Africa. Corruption Watch fights corruption through public mobilisation, litigation,
investigations and research. The media are also important players in exposing corruption, and
potential partners in anti-corruption campaigns. Trade unions are well placed to monitor and
report corruption in the organisations and business sectors in which they are active. The members
of trade unions have an especially important role in blowing the whistle on corruption, both in
organisations in which they represent workers, as well as in the respective workplaces, and the
unions have a crucial role in supporting efforts to build whistle-blower protection programmes.
The unions are potentially valuable partners in national efforts to prevent corruption and in future
anti-corruption campaigns.
Civil society and non-governmental organisations feature prominently in the detection of, and
reporting on corruption as it manifests in the broader society. They also play a key role in
educating and representing particular constituents and remain a powerful mechanism to
promote positive behaviour. Some of these organisations and emerging social movements are
vital in mobilising people around rights (such as access to information) and demanding
transparency and accountability for organs of state. Corruption however also manifests within this
sector, given that many people who work in the sector are economically vulnerable, making it
difficult for them to blow the whistle on corruption in their own sectors. In addition to the
promotion of general reporting of corruption by citizens and their empowerment to do this,
leaders in the civil society sector can play a key role to support greater integrity within the sector
itself by subjecting themselves to the same stringent standards demanded from both business
and the public sector.
Lastly, the individual South African citizen’s awareness and participation, either through joining
public campaigns or blowing the whistle on suspected cases of corruption, are crucial in national
anti-corruption efforts. To play this role, ordinary members of the public should be able to
recognise corrupt behaviour and feel empowered to take a stand against it, for example, by
bringing it to the attention of the relevant authorities. Whistle-blowing should be promoted and
encouraged by publicising stories of successful prosecutions as a result of information provided
by whistle-blowers, as well as reporting on the effective protection of such persons from any form
of harm or victimisation. Further, the citizenry can provide pressure for improved accountability
and transparency in various sectors in South Africa. The proposed National Anti-Corruption
Strategy should empower more citizens to play an active role in reducing corruption.
7 National Anti-Corruption Strategy
Discussion Document5. Challenge
Corruption undermines the values of the Constitution and progress towards greater social and
economic transformation as well as democratic processes. It not only results in the loss of state
revenue for economic and social development and service delivery, but also erodes the capacity
and legitimacy of the State.
Under National Party rule, a form of capitalism developed that blurred the boundaries between
party, private capital and the State. A report commissioned by the National Anti-Corruption
Forum details examples of entrenched corruption that was observed and prevalent under the
previous dispensation.5 Academics have described patronage6 in the appointment of people to
the public sector7 and in the development of white, and in particular Afrikaner, capital.8
Furthermore, parts of the homeland administrations were ruled through patrimonial networks
that extended from the central apartheid state to local chiefs and public servants.9 By the late
1970s and 1980s, as the apartheid state unravelled, fraud, theft and other corrupt activity appear
to have grown in the top echelons of the State.10 The state security agencies and police were
particularly implicated in corruption, and the climate was ideal for these abuses given the levels of
secrecy under which they operated.11 Some of the institutional legacies of this past have
interacted with contemporary politics and changes to the structure of society and the state
bureaucracy to shape the nature of corruption in South Africa today.
Corruption is usually a hidden phenomenon and attempts to determine its current prevalence are
therefore difficult. However, research on perceptions of corruption, experiences of corruption and
related crimes, and compliance with legislation aimed at improving accountability and reducing
corruption can provide an indication of the nature of the problem to be tackled.
Assessments of public perceptions over the last 15 years show that citizens feel that corruption
has increased. Although a rough indicator of corruption in the country, these perceptions are
important pointers in terms of the level of trust between the State and citizens. A report issued by
the Human Sciences Research Council that used data from the South African Social Attitudes
Survey indicated that the vast majority of those surveyed in 2011 (91%) believe that corruption is
a serious problem in South Africa.
5 Van Vuuren, H. 2006. ‘Apartheid grand corruption: assessing the scale of crimes of profit in South Africa from 1976 to 1994’. Institute of Security Studies, Pretoria,
commissioned by the civil society representatives of the Second National Anti-Corruption Summit.
6 Patronage is generally accepted to mean the power to control appointments to office or the right to privileges, but is also used in this context as synonymous with
favouritism, nepotism, partisanship, partiality, preferential treatment and “the old boy network”.
7 Posel, D. 1999. ‘Whiteness and Power in the South African Civil Service: Paradoxes of the Apartheid State.’ In Journal of Southern African Studies 25 (1): 99–119.
8 O’Meara, D. 1996. Forty Lost Years: The Apartheid State and the Politics of the National Party, 1948-1994. Randburg: Ravan Press.
9 Peires, J.B. 1992. ‘The Implosion of the Transkei and Ciskei.’ In African Affairs, 91: 365–87’.
10 Hyslop, J. 2005. ‘Political Corruption: Before and after Apartheid’. In Journal of Southern African Studies, 31(4): 773–789.
11 Van Vuuren, ‘Apartheid grand corruption: assessing the scale of crimes of profit in South Africa from 1976 to 1994’.
National Anti-Corruption Strategy
Discussion Document 8In 2003, 9% of respondents put corruption in the top three most serious national challenges,
which increased to 26% in 2011.12 In the latest Afrobarometer survey, undertaken in 2015, 64% of
the respondents stated that they felt that corruption had increased significantly over the last year,
and 19% felt that it had increased slightly.13
Transparency International’s 2015 global Corruptions Perception Index currently scores South
Africa at 44, down from the past high of 51 in 2007. (A score of 0 means a country is considered
“very corrupt”, and a score of 100 means a country is considered “very clean”.) South Africa’s
ranking compared to other countries in terms of the Corruption Perception Index has also
deteriorated, dropping 29 places in the global perceptions ranking since 2001. (The higher the
ranking of a country, the “cleaner” it is considered to be.)14
A range of surveys, among others the National Victims of Crime Survey, Human Sciences Research
Council’s Quality of Life Survey (2012), the Afrobarometer and Transparency International’s
research, suggest that instances of bribery are fairly common in some services in which the public
interfaces with government officials. This is the case in traffic policing and, to a lesser extent, in
home affairs, local government and policing.15
In policing, corruption more generally, i.e. not just bribery but also theft, fraud and other forms of
corruption, has been described as systemic16, limiting the State’s ability to tackle it and other
forms of crime. Immigration and border control are also particularly vulnerable to corruption.
Citizens’ experience of these services or sectors is of central importance in shaping public
perceptions of corruption in South African society more generally.
The South African Government has developed several strategies, campaigns and frameworks to
specifically reduce corruption and support ethical practice in the public sector. These include the
National Crime Prevention Strategy, 1996; the Batho Pele programme, aimed at supporting an
ethical and citizen-orientated public service that was first developed in 1997 and relaunched
under a dedicated campaign in 2004; the Public Service Anti-Corruption Strategy, 2002, and
mechanisms resulting from the strategy, such as the development of guidelines for minimum
12 Human Sciences Research Council (HSRC). 2012. ‘Business Unusual: Perceptions of Corruption in South Africa’ In HSRC Review, Vol 10 (2), Human Sciences Research Council,
Pretoria.
13 Afrobarometer. 2016. ‘Summary of Results. Round 6 Survey in South Africa.’ Available at www.afrobarometer.org
14 “The Corruption Perceptions Index (CPI) ranks countries and territories based on how corrupt their public sector is perceived to be. It is a composite index – a combination of
polls – drawing on corruption-related data collected by a variety of reputable institutions. The CPI reflects the views of observers from around the world, including experts
living and working in the countries and territories evaluated.” Source: http://www.transparency.org/cpi2013/in_detail#myAnchor2 (accessed May 2016).
15 See Transparency International. 2015. ‘Exporting Corruption: Assessing Enforcement of the OECD Convention on Combating Foreign Bribery’, results per country posted on the
Transparency International website: http://www.transparency.org/exporting_corruption (accessed April 2016); HSRC, ‘Business Unusual: Perceptions of Corruption in South
Africa.’; Afrobarometer, ‘Summary of Results. Round 6 Survey in South Africa.’; National Victims of Crime Survey, cited in Bruce, D. 2014. ‘Counting the covert: Using data to
understand corruption in South Africa’. ISS Monograph No. 198, Institute of Security Studies, Pretoria.
16 Newham, G. and Faull, A. 2011. ‘Protector or predator? Tackling police corruption in South Africa.’ ISS Monograph, Institute of Security Studies, Pretoria.
9 National Anti-Corruption Strategy
Discussion Documentanti-corruption capacity in public service departments and entities; the development of the
Financial Disclosure Framework for managers in the public service; the development of a Public
Service Integrity Management Framework; and the Local Government Anti-Corruption Strategy,
which was approved in May 2016. Further, some provinces, municipalities and public sector
organisations have developed their own anti-corruption strategies.
The Public Service Anti-Corruption Strategy (PSACS) was particularly important for bolstering the
legislative framework to fight corruption, and establishing policies, norms and guidelines for
supporting anti-corruption and integrity management work in the public service. The PSACS
proposed a review of the legislative framework surrounding corruption, and the consolidation of
this framework into a new corruption act. The PSACS also suggested that departments foster a
minimum capacity to fight corruption, and pointed to the need for mechanisms to coordinate the
numerous government entities involved in anti-corruption initiatives. The PSACS called for the
improvement of management policies and practices related to areas such as the management of
employment, discipline, procurement, risk, information and finances; the establishment of a
comprehensive system of professional ethics; as well as greater stakeholder participation. It also
suggested that these initiatives should all be underpinned by training and education
programmes.
South Africa has developed a fairly comprehensive legislative framework for combating
corruption, ranging from the Prevention and Combating of Corrupt Activities Act, through other
legislation dealing with financial and organised crime, public finance management and
procurement legislation, to legislation promoting the public’s access to information held by the
public and private sectors. As mentioned previously, South Africa is also a signatory to several
international conventions and treaties. However, the implementation or enforcement of some of
these obligations and aligned legislation remains uneven and, in some cases, weak.
A generally clear set of rules and values has been articled for guiding the conduct of public
servants and members of the executive. Despite many public servants and politicians being
committed to serving the public, compliance with these regulations and codes has been generally
weak. This is especially the case in supply chain, human resource management and in compliance
with frameworks for disclosing business and other financial interests.17 An environment of
non-compliance enables corruption and makes it hard to detect.
17 See Auditor-General of South Africa (AGSA) consolidated reports on the PFMA and MFMA for the years 2012-2015; and PSC reports in the case of the public service: 2011.
‘Report on Financial Misconduct for the 2009/2010 Financial Year’ (2011); ‘Fact Sheet on Actions Taken by the Executive Authorities with regard to Identified Cases of Potential
Conflicts of Interests and Compliance with the Financial Disclosure Framework.’ (2013); ‘Factsheet on Financial Misconduct and the Recovery of Money Lost through Financial
Misconduct for the 2013/2014 Financial Year.’ (2015); ‘Assessment of the Handling of Disciplinary Cases in the Public Service.’ (2016).
National Anti-Corruption Strategy
Discussion Document 10In national, provincial and local government, the Auditor-General findings show rising irregular
expenditure (despite an improvement in the number of clean audits) in local government and the
public service.18 Between 2009 and 2013, 75% of the total irregular and wasteful expenditure was
attributed to the contravention of supply chain management regulations.19 Public procurement is
a significant area of potential risk for corruption by public and private sector players in South
Africa.
Private sector involvement in corruption remains a concern with many companies still failing to
report corrupt activity as a result of the stigma attached to admitting control and governance
failures. Corruption in state procurement usually implicates both public and business sector
players. Private sector involvement in corruption has taken the form of bribery, locally and in
business dealings with other African countries, and fraud in procuring with the State. In addition,
the Competition Commission has uncovered practices of collusion in tendering with the State.
Another business practice that remains particularly problematic is “fronting” or the deliberate or
attempted circumvention of the B-BBEE Act, Act 53 of 2003 and the related codes.
Data on the integrity and compliance with relevant legislation in state-owned entities remains
scanty. Scandals in several large state-owned entities around board and management instability,
and procurement and appointment irregularities, are however a cause for concern, especially in
view of the substantial procurement budget of these entities. The Presidential Review Committee
on state-owned entities cited the African National Congress’s Committee on Schedule 2
state-owned entities that rising corruption is a problem facing these companies.20
Regulations and codes preventing elected officials from doing business with the State, and
regulating the conditions under which family members of elected officials can do business with
the State, are not being adhered to in many cases. Further, public servants and local government
employees are not facing appropriate (legislated) sanction for non-compliance. On average, the
executive has not ensured compliance with these frameworks and regulations in the public, 21 and
oversight structures in municipal councils are not always working effectively. Further, monitoring
of compliance in the government sector has relied heavily on self-reporting, but has not
sufficiently included citizens. Self-reporting has thus far not led to improved compliance, and
consideration should be given to improving processes for feedback on corruption to the public,
for example interaction and feedback to the community and other interested groups as proposed
in the revised Local Government Anti-Corruption Strategy.
18 See Auditor-General of South Africa (AGSA) consolidated reports on the PFMA and MFMA for the years 2012 to 2015.
19 Based on Auditor-General reports 2009 to 2013, in Brunette, R. et al. 2014. ‘The Contract State: Outsourcing and Decentralisation in Contemporary South Africa’. Public Affairs
Research Institute, Johannesburg.
20 Presidential Review Committee on State-Owned Enterprises. 2012. Presidential Review Committee on State-Owned Enterprises: Main Report, Volume 2.’ The Presidency,
Pretoria.
21 Public Service Commission (PSC). 2013. ‘Fact Sheet on Actions Taken by the Executive Authorities with regard to Identified Cases of Potential Conflicts of Interests and
Compliance with the Financial Disclosure Framework.’ PSC, Pretoria.
11 National Anti-Corruption Strategy
Discussion DocumentThe recent release of the African Union and the United Nations Economic Commission for Africa
report on illicit financial flows from Africa, and the release of the “Panama Papers” by the
International Consortium of Investigative Journalists, provide some insight into the extent of
monies flowing illegally across borders linked to tax evasion, bribery, illegal arms dealing and
financial fraud involving politicians, state officials, business people and corporates.22 South Africa
is ranked seventh in the world in terms of the volume of illicit financial flows from developing and
middle-income countries. This figure is based on the highest average illicit financial flows23
between 2003 and 2014, which was $20,922 billion.24 The African Union report notes that,
"Transparency of ownership and control of companies, partnerships, trusts and other legal entities
that can hold assets and open bank accounts is critical to the ability to determine where illicit
funds are moving and who is moving them.”25 In this regard, at the recent Open Government
Partnership Africa Regional Meeting in Cape Town, the South African Government announced an
action plan that includes commitments to compile a register of beneficial ownership of all
companies in the country.26
The National Development Plan has noted that the implementation of the Promotion of Access to
Information Act 2 of 2000 and the Promotion of Administrative Justice Act 3 of 2000 needs to be
improved. Currently, the state of recordkeeping in several government departments and
municipalities is poor27, which affects citizens’ right to access information and departments’
capacity to support the Promotion of Access to Information Act, Act 2 of 2000 and Administrative
Justice Act, Act 3 of 2000.
Improved institutional mechanisms to support whistle-blowers are also needed. As outlined by
various reports produced under the United National Convention Against Corruption, providing
this protection requires a range of interventions, such as improved systems to provide for
appropriate legal aid for whistle-blowers, ensuring that whistle-blowers can report anonymously
to the extent possible and that their identities and the information they provide are recorded,
stored and used in such a way that this does not unnecessarily increase the risk of harm to the
whistle-blower and so forth.
Further efforts are also required to engage and empower more citizens in the fight against
corruption, through for example awareness-raising campaigns, national debates on the nature of
22 See African Union and the United Nations Economic Commission for Africa. 2015. ‘Illicit Financial Flow: Report of the High Level Panel on Illicit Financial Flows from Africa.’
African Union and the United Nations Economic Commission for Africa Conference of Ministers of Finance, Planning and Economic Development; and the Panama Papers
website. The Panama Papers refers to the analysis and presentation of leaked data from the Panama-based law firm Mossack Fonseca. See: https://panamapapers.
icij.org/video/ (accessed April 2016).
23 Illegal movement of money or capital from one country to another.
24 Global Financial Integrity. 2016. Data on the Global Financial Integrity website: http://www.gfintegrty.org/report/illicit-financial-flows-from-developing-countries-2004-
2013/ (accessed April 2016).
25 African Union et al, ‘Illicit Financial Flow: Report of the High Level Panel on Illicit Financial Flows from Africa.’
26 Economic Justice Network, Financial Transparency Coalition, and the Tax Justice Network. 2016. ‘A month after Panama Papers, South Africa commits to end anonymous
companies.’ Joint press release, 6 May 2016.
27 Archival Platform. 2015. State of the Archives: An Analysis of South Africa’s National Archival System. Archival Platform, Cape Town.
National Anti-Corruption Strategy
Discussion Document 12corruption, its effects on society and the kinds of pressures and institutional factors that enable
corruption. Campaigns which provide people with information on their rights in terms of
accessing services are also needed: if citizens have good information about the functioning of a
particular administrative process, and the rights they have in terms of the expected conduct of a
public servant or private sector service provider, they are in a better position to resist requests for
bribes, and in a better position to blow the whistle on possible cases of corruption.
Regarding enforcement of legislation regulating the business sector, large companies follow the
King Code. The first two iterations of the code applied to listed companies and government
departments at national, provincial and local levels; the third has been developed so that civil
society can incorporate these governance codes into the management of their organisations.
King IV was launched in 2016. The King Code is not adequately enforced through domestic
legislation, though legislation such as the Companies Act now incorporates some of the aspects
covered in the Code.
This has to some degree assisted in improving the transparency of private sector activity.
However, notwithstanding the obligation to report corruption and various other offences in terms
of the Prevention and Combating of Corrupt Activities Act, many companies still fail to report
corrupt activity as a result of the stigma attached to admitting control and governance failures.
Furthermore, initiatives are needed to bring unlisted and smaller companies into the national
dialogue on corruption.
The Prevention and Combating of Corrupt Activities Act has thus far been insufficiently used to
prosecute cases of corruption. Law-enforcement agencies prefer to investigate and prosecute
potentially corrupt activities through the use of legislation pertaining to other financial crimes or
common law offences such as fraud, than to investigate or prepare cases based on offences listed
under the Corrupt Activities Act.28 This appears to be due to the lack of police training on how to
develop cases for prosecution under the Act, and the need for training on the Act in the courts,
and due to difficulties in proving that bribery took place. Significantly, the enforcement of the Act,
and other acts dealing with financial and organised crime, are affected by the capacity of the
criminal justice system and relevant oversight bodies.
Some oversight bodies have developed a public reputation of independence, integrity and
capacity, including the Auditor-General, the Financial Intelligence Centre, and the Public
Protector.
28 Newham, G. 2016. Interview with Gareth Newham, Institute of Security Studies, 7 April 2016.
13 National Anti-Corruption Strategy
Discussion DocumentThe Specialised Commercial Crimes Courts have achieved success in prosecuting corruption, the
Asset Forfeiture Unit has been successful in seizing assets, and the Special Investigating Unit has
successfully pursued cases of corruption.
A central issue of concern raised by civil society organisations and the National Development Plan
is that the independence of the criminal justice agencies tasked with investigating and
prosecuting corruption has not been effectively maintained.29 A 2011 Constitutional Court ruling
found that the State has a constitutional obligation to establish and maintain an independent
body to combat corruption and organised crime, and that the Directorate for Priority Crime
Investigation lacked this structural and operational independence.30 This was reaffirmed in a
Constitutional Court ruling in 2014.31 Effective independence is needed to improve the appetite
for pursuing senior politicians, officials and business people, and to build public confidence in
Government’s commitment to reduce corruption, as well as to strengthen the rule of law in the
country.
South Africa’s anti-corruption system requires adequate safeguards of independence, and
adequate resourcing in the form of sufficient budget and the appropriately trained and
experienced staff. Furthermore, improved coordination between the various government
agencies tasked with reducing corruption and supporting ethical practice is needed. Specifically,
mechanisms are required to ensure that representatives of the various bodies on the Anti-
Corruption Task Team do not prioritise their own agency work over cross-agency collaboration.
There are also real challenges to collaboration and information-sharing across the government,
business and civil society sectors. The National Anti-Corruption Forum (NACF) is no longer
meaningfully active, limiting cross-sectoral collaboration in developing anti-corruption
mechanisms. Intersectoral collaboration is crucial and proper planning to revitalise this or to
constitute a similar intersectoral platform should ensure sufficient institutional capacity and
resources (permanent staff and adequate budget / sectoral contributions) are available to enable
meaningful implementation of intersectoral anti-corruption programmes. Given the intersectoral
nature of such an organisation, it can play a significant role in the promotion and implementation
of a national strategy.
29 National Planning Commission. 2016. ‘The National Development Plan’; Tamukamoyo, H, and Mofana, R. 2013. ‘Is South Africa really complying with the anti-corruption
protocols it has ratified?’. In ISS Today, 9 July 2013, Institute for Security Studies, Pretoria; Corruption Watch. 2015. ‘Hawks saga: the feather continue to fly’, published on
Corruption Watch’s website on the 15 January 2015: http://www.corruptionwatch.org.za/hawks-saga-feathers-continue-to-fly/ (accessed April 2016); Newham, G. 2016.
Interview with Gareth Newham, Institute of Security Studies, 7 April 2016; De Vos, P. 2015. ‘Turmoil at the Hawks: A birds eye view of the legalities’, published online on the
Daily Maverick, 8 January 2015: http://www.dailymaverick.co.za/opinionista/2015-01-08-turmoil-at-the-hawks-a-birds-eye-view-of-the-legalities/#.Vw0Mc-mKh68
(accessed April 2016).
30 Constitutional Court of South Africa. 2011. ‘Case CCT 48/10 [2011] ZACC 6.’ Constitutional Court of South Africa, Johannesburg.
31 Constitutional Court of South Africa. 2014. Press release in respect of case CCT 07/14 and CCT 09/14, posted on the Southern African Legal Information Institute: http://
ww.saflii.org/za/cases/ZACC/2014/32media.pdf (accessed May 2016).
National Anti-Corruption Strategy
Discussion Document 14Outside of the conduct of officials and employees in their organisational settings across various
sectors, improved adherence to certain laws by the public would reduce the room for corruption.
For example, greater compliance with traffic laws by the public potentially provides fewer
opportunities for traffic officers to solicit bribes. Conversely, ensuring that the rules of the road are
appropriately enforced by traffic officers could increase compliance by road users and reduce the
incentives to offer bribes.
Better data is needed to improve anti-corruption efforts in South Africa. The data already captured
by the State and private sector could be better reported. Data on investigations and convictions
of cases involving corruption is inconsistently reported by various crime-fighting agencies; data
on compliance with regulations relevant to corruption is inconsistently collected and reported by
government agencies, and not sufficiently consolidated and used to inform risk profiling, etc.
Further, private sector reporting of corruption remains too low. Improving the collection,
reporting and analysis of these kinds of statistics are important for monitoring the State and other
sectors’ impact on reducing corruption, and identifying areas of potential or current risk for
corruption.
15 National Anti-Corruption Strategy
Discussion DocumentIn summary, the following major issues should be given consideration in a National Anti-
Corruption Strategy:
• The need for efforts to empower citizens in the fight against corruption through
awareness-raising campaigns, campaigns on citizens’ rights in terms of administrative
process and improved whistle-blower protection.
• Building ethical leadership across government, business and civil society sectors.
• Building a professional public sector orientated towards serving citizens and implementing
policy.
• Improving adherence to anti-corruption and integrity management regulations and other
regulations with relevance for anti-corruption, and ensuring improved consequence
management for non-compliance with these regulations and codes of conduct across
sectors.
• Improving transparency of activity and use of resources in the government, business and civil
society sectors.
• Improving the transparency and accountability of the public procurement system to ensure
fair, effective and efficient use of public resources.
• Improving the collection, reporting, analysis and use of data relevant to anti-corruption work.
• Developing or strengthening programmes aimed at tackling corruption in sectors
particularly vulnerable to corruption.
• Strengthening the capacity of government organisations tasked with combating corruption
and providing oversight of government’s work through adequate resourcing and
strengthened independence.
• Ensuring personnel in organisations tasked with anti-corruption and integrity management
work have the necessary training and organisational support to undertake their work.
• Improving platforms for cooperation between the various anti-corruption bodies.
• Strengthening stakeholder partnerships to support anti-corruption work across sectors.
South Africa can build on progress already made. This includes generally robust legislation for
fighting corruption; some very strong investigative skills in senior police ranks in South Africa;
Chapter 9 and 10 institutions committed to promoting integrity in public and private sectors; a
generally clear set of rules and values for guiding the conduct of government employees and
members of the executive in the government sector; organised business and civil society having
shown earlier commitments to collaborating on anti-corruption efforts which can be revived; and
South Africa having a free media and active civil society to support efforts to build accountability.
At this point there is a need to develop a comprehensive strategy that can establish an integrated
approach to support improved coordination between the numerous role players in the fight
against corruption, and to tackle the systemic causes of corruption in the country.
National Anti-Corruption Strategy
Discussion Document 16You can also read
